Post on 18-Feb-2021
Presented by:
Nick Gordon
James Van Thof
DUCT TAPE –
Not an AS/RS Modernization Tool
© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
MODERNIZATIONS –
DEFINING, JUSTIFYING, EXECUTING
Understanding the financial drivers / impacts
Turning the drivers into a successful project
Example of modernization justification and results
DRIVERS FOR MODERNIZATIONS:
EQUIPMENT OR SOFTWARE OBSOLESCENCE
SAFETY / COMPLIANCE ISSUES
RELIABILITY / PERFORMANCE ISSUES
UNSATISFACTORY SERVICE OR SUPPORT
BUSINESS HAS CHANGED
Hard
est to
Easiest to Ju
stify
UNSATISFACTORY SERVICE / SUPPORT
SAFETY / COMPLIANCE
OBSOLETE: Just like your
junk drawer at home!!!
OBSOLESCENCE OF
SOFTWARE AND HARDWARE
OBSOLESCENCE OF
ORGANIZATIONAL SUPPORT
Not meeting customer demands
Affecting production
Reducing employee retention
RELIABILITY / PERFORMANCE
Overtime $$$$$
$$$$
$$$
$$
$
RELIABILITY / PERFORMANCE
PR
OF
IT
Overtime
Rush shipments
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
Overtime
Rush shipments
Increased maintenance costs
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
Overtime
Rush shipments
Increased maintenance costs
Loss of inventory
RELIABILITY / PERFORMANCE
PR
OF
IT
$$$$$
$$$$
$$$
$$
$
Omni-channel
Increased customer demands
Pallet / Case / Each fulfillment
SKU proliferation
Faster inventory turns
BUSINESS HAS CHANGED
HOW TO TURN BUSINESS DRIVERS INTO A
SUCCESSFUL PROJECT?
DEFINE Problem Statement
FIND Partner
INVESTIGATE Solutions
DEVELOP Priorities and Plan
GET Approval
EXECUTE Project
MEASURE Results
DEFINE THE PROBLEM
Involve cross-functional stakeholders
Define business objectives
Define current & future state
Document performance requirements
Define acceptance criteria
FIND A TRUSTED PARTNER
Do they have extensive experience with live modernizations and new systems?
Do they have a defined process to help you make informed decisions?
- Emulation / simulation
- Defined acceptance and sign off criteria
- Breadth of knowledge across industry
- Off-hour integration testing on live system
Best of breed solution vs. One product line
INVESTIGATE SOLUTIONS
Crane modernization
• Upgrade controls
• New positioning system
• New motor and drives
• Rebuild shuttles
• New wheels and rails
• New power rails
Reconfigure equipment
Add new equipment
Carousel controls upgrade
Conveyor modernization
• New scanners
• Additional sensors and functions
• Replace sorters
• New sequence of operations
WCS upgrade/replacement
• Run old and new equipment
• Interface with new WMS
• Additional functions
GETTING YOUR PROJECT APPROVED
Tie to business drivers and objectives
Clear return on investment (ROI)
Early stakeholder support
Proven vendors
Keep the strategic intent in mind
Develop phased plans to align
with budget
Quick hits vs Most pain
Logical order
DEVELOP PRIORITIES AND PLAN
Insurance
Risk Avoidance
Challenging Financial Return
EXECUTE
Functionality
Throughput
Reliability / Availability
MEASURE RESULTS
Phase I (~$500k)
• New WCS
• Conveyor controls
Phase II (~$4M)
• Add two unit load
cranes
• Stretch wrapper
• Additional Conveyor
• Expanded WCS
DEVELOP PLAN
Phase I
• 20% throughput
increase
• SQL server
• Able to delay
expansion 2 years
Phase II
• Added 8500 pallet
positions
MEASURE RESULTS DEFINE PROBLEM
System 95-97% full
Throughput insufficient
IT requires SQL servers
OEM support is gone
Sales increasing
REFRIGERATED WAREHOUSE CASE STUDY
CATEGORY NO YES COMMENTS
Safety / Compliance ✔ Corporate IT requirements
for SQL Server
Equipment or Software Obsolescence
✔ WCS obsolete
Reliability / Performance ✔ Not meeting throughput
needs
Unsatisfactory OEM Service or Support
✔ Unsatisfied with OEM support on resolving
initiative
Business Has Changed ✔
REFRIGERATED WAREHOUSE DRIVERS
MODERNIZING IS A
COST-EFFECTIVE
WAY TO ADAPT TO
A NEW AND
CHANGING WORLD
For More Information:
Speaker # 1 email: ngord@Retrotech.com
Speaker #2 email: jvant@Retrotech.com
website: www.Retrotech.com
585.924.6333
Or visit MODEX 2016 Booth 2447
mailto:ngord@Retrotech.commailto:jvant@Retrotech.comhttp://www.retrotech.com/